Tribe profitable with Las Vegas management team

After two years of restructuring its business and with a lawsuit filed by a Las Vegas management company still undecided, the Buffalo Thunder Resort & Casino is profitable, the governor of the Pueblo Pojoaque Tribe that built the resort in New Mexico said Wednesday.

George Rivera said the tribe was "making money with our management team."

Full House Resorts took over the day-to-day operations of the casino north of Santa Fe in March 2011 when Fine Point Group Inc. was replaced after a dispute with the tribe.

Both Full House and Fine Point are based in Las Vegas. Riviera admitted the tribe "stumbled" when it hired Fine Point - a business relationship that lasted less than a year. He said the tribe learned a lot from the experience, especially about protecting its assets.

"I want to talk about the successes," Riviera said during an hourlong panel discussion at Global Gaming Expo at The Venetian on how tribes should evaluate their management contracts. "We have a great working relationship now. We trust each other."

Riviera said 2008 was a tough year for Buffalo Thunder, forcing the property to look to restructure its debt. Buffalo Thunder was originally financed in 2006 with $245 million in bonds with a 9.375 percent interest rate, but it defaulted on a bond payment in 2009.

The default led to Pueblo officials announcing a restructuring in 2010 that included the hiring of Fine Point. Riviera said the two years it took to restructure the gaming company were not easy.

Despite a failed relationship with Fine Point, Rivera advised tribes operating casinos to use a management company to oversee the property. He said Buffalo Thunder's financial success was due in large part to Full House.

James Dacey, vice president of Indian Gaming development with Full House, told about 75 tribal gaming executives and analysts that a successful partnership is one that includes "shared goals, defined successes and uncomfortable conversations."

Dacey stressed that after the lawyers and regulators have played their part, tribal executives have to remember that "none of these folks are involved in the selection of a management team." Neither Dacey nor Rivera would discuss the casino's relationship with Fine Point.

"They have to accept that this is your property, your future, not theirs," Dacey said. "This is also a cultural decision, a management team needs to understand and be respectful of your culture."

Dacey reminded executives that "this is a marriage we know will end," with tribal management contracts having a seven-year term limit.

Contact reporter Chris Sieroty at csieroty@reviewjournal.com or 702-477-3893.